MindChamps to divest centre at Changi Business Park to franchisee

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MindChamps to divest centre at Changi Business Park to franchisee.

MINDCHAMPS PreSchool announced on Monday after trading hours that it is divesting its centre at Changi Business Park for a cash consideration of S$1.03 million to franchisee Yirong Education to operate.

Following the completion of the transaction, MindChamps Preschool @ Changi Business Park is expected to continue operations at the centre under the franchise agreement, in which Yirong Education will pay royalties to MindChamps. The consideration was arrived at after taking into consideration factors such as existing assets, the financial position and business prospects of the centre.

As at Dec 31 last year, the book value of the centre was S$545,745 and its net tangible asset value was S$471,898.The transaction is expected to have a positive impact on the consolidated earnings per share and net tangible assets per share of the company and its subsidiaries for the financial year ending Dec 31, 2019.

 

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